[alert-heading]

Beginning on 10/19/18, Class C shares held for 10 years or more will automatically convert to Class A shares. Thereafter, Class C shares held for 10 years or more will automatically convert to Class A shares on a monthly basis. This conversion allows shareholders to take advantage of the lower expenses offered by Class A shares. Please see the prospectus supplement for more information. If you have any questions, please contact your financial advisor or call Franklin Templeton.

Franklin Mutual Quest Fund has changed its September distribution date from early September to early October. This change will allow the fund to more accurately capture necessary distribution data. The fund will also continue to make distributions in December. For more information, please contact your financial advisor or Franklin Templeton Shareholder Services.

SALES CHARGE, EXPENSES, & FEES
As of 05/01/2019
(updated annually)

Fund Description

The fund seeks capital appreciation with income as a secondary goal. Its strategy is focused on undervalued mid- to large-cap equity securities with a significant portion of its assets in foreign securities. The fund also invests in distressed securities and merger arbitrage.

Strategy Statement

"Our goal is to deliver attractive, risk-adjusted returns over the long run. We don't make macro calls on the economy, instead focusing on identifying what a business is worth through careful research."

Shawn Tumulty

Management

Shawn Tumulty

Joined Franklin Templeton in 2000

Managed Fund Since 2003

Keith W. Luh, CFA®

Joined Franklin Templeton in 2005

Managed Fund Since 2010

Rating

Overall Morningstar Rating
As of 04/30/2019

Rating Category:
World Allocation

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating
As of 04/30/2019

Years

Ratings

Fundsin category

3

4
Stars

400

5

3
Stars

323

10

3
Stars

163

Morningstar Style Box

We do not publish a style box for this fund.

Strategy, Benefits, Results

Strategy

At Franklin Mutual Series, we focus on recognizing value that other investors might miss.

Our goal is to deliver solid, risk-adjusted returns, year in and year out. Over the last 60 years, Franklin Mutual Series' consistent, deep-value approach has benefited shareholders with long-term investment horizons.

Opportunistic Value Investors. Our core investments are in undervalued stocks with viable catalysts that we believe will change the way the market views their true worth.

Think and Act Like Company Owners. We won't hesitate to become activist investors if our shareholders' interests need to be protected.

Strive To Reduce Risk. Our unique strategy has historically provided the fund with lower volatility than the overall market and has enabled us to deliver strong results over the long term.

Benefits

Diversification. With the flexibility to invest a significant portion of its assets in foreign securities, the fund has the ability to take advantage of undervalued opportunities across the globe.

A Record of Low Volatility.

Performance in All Types of Markets. For 30 years, Franklin Mutual Quest Fund has proven aimed to achieve long-term growth in up, down and sideways market cycles.

Results

Hypothetical $10K Investment

Investing In The Fund

What Are the Risks?

All investments involve risks, including possible loss of principal.

Value securities may not increase in price as anticipated or may decline further in value.

Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments.

Smaller-company stocks have exhibited greater price volatility than larger-company stocks, particularly over the short term.

The fund’s investments in companies engaged in mergers, reorganizations or liquidations also involve special risks as pending deals may not be completed on time or on favorable terms.

The fund may invest in lower-rated bonds, which entail higher credit risk.

Please consult the prospectus for a more detailed description of the fund’s risks.

Important Legal Information

Most Franklin Templeton funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance. In general, Class A/A1 have a maximum initial sales charge; Class C/C1 shares have a 1% contingent deferred sales charge; Class Z, Advisor Class and Class R6 shares have no sales charges nor Rule 12b-1 fees; Class R shares have no sales charges, but do have a Rule 12b-1 fee.

Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total Returns With Sales Charge: returns reflect the deduction of the stated sales charge. Total returns, distribution rate, and yields reflect any applicable expense reductions, without which the results for those impacted funds would have been lower.

Class R shares do not have sales charges and are only offered to certain eligible investors as stated in the prospectus.

All investments involve risks, including possible loss of principal. Value securities may not increase in price as anticipated or may decline further in value. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Smaller-company stocks have exhibited greater price volatility than larger-company stocks, particularly over the short term. The fund's investments in companies engaged in mergers, reorganizations or liquidations also involve special risks as pending deals may not be completed on time or on favorable terms. The fund may invest in lower-rated bonds, which entail higher credit risk. Please consult the prospectus for a more detailed description of the fund's risks.

For more information on any of our funds, contact your financial advisor or download a prospectus. Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares.

Advisor Class, Class R, Class R6 and Class Z shares are only offered to certain eligible investors as stated in the prospectus. The fund offers multiple share classes, which are subject to different fees and expenses that will affect their performance. Please see the prospectus for details. Change the share class selection in the dropdown at the top of this page in order to see its performance details.

Footnotes

A statistical measurement of the range of a fund's total returns. In general, a higher standard deviation means greater volatility. Based on the fund's monthly returns over the 3-year period ended as of the date of the calculation.

A statistical measurement of a fund's historical risk-adjusted performance. It is calculated by taking a fund's excess return over that of the three-month Treasury bill divided by its standard deviation. Higher values generally indicate better historical risk-adjusted performance. Based on the 3 years ended as of the date of the calculation.

The annualized percentage difference between a fund's actual returns and its expected performance given its level of market risk, as measured by beta. Based on the 3-year period ended as of the date of the calculation.

Effective May 1, 2009 the fund began offering Class R shares. Performance quotations have been calculated as follows: (a) for periods prior to May 1, 2009, a restated figure is used based on the fund's Class Z performance, including the effect of the Class R Rule 12b-1 fee and (b) for periods after May 1, 2009, actual Class R performance is used, reflecting all charges and fees applicable to that class.

Percentage of the fund's returns explained by movements in the S&P 500 Index. 100 equals perfect correlation to the index. Based on the 3-year period ended as of the date of the calculation.

Public Offering Price — Purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.

Net Asset Value — The amount per share you would receive if you sold shares that day.

Source: Morningstar®. For each mutual fund and exchange traded fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on how a fund ranks on a Morningstar Risk-Adjusted Return measure against other funds in the same category. This measure takes into account variations in a fund's monthly performance, and does not take into account the effects of sales charges and loads, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The weights are: 100% 3-year rating for 36-59 months of total returns, 60% 5-year rating/40% 3-year rating for 60-119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods. Morningstar Rating is for the named share class only; other classes may have different performance characteristics. Past performance is not an indicator or a guarantee of future performance.

The Morningstar Rating™ for this share class is based on Morningstar's extended performance calculation. This means that, for a share class that doesn't have a 1-, 3-, 5-, or 10-year performance history, the rating shown is a hypothetical Morningstar Rating based first on the oldest active surviving share class of the fund and then any dormant or liquidated share classes. If more than one share class has the earliest inception date, Morningstar selects the share class that is freely available to investors, that is not currency-hedged, and has the lowest fee.

A measure of the fund's volatility relative to the market, as represented by the MSCI World Index. A beta greater than 1.00 indicates volatility greater than the market. Based on the 3-year period ended as of the date of the calculation.

Indices are unmanaged and one cannot invest directly in them. Index returns do not reflect any fees, expenses or sales charges.

For performance reporting purposes, the inception date for Classes A/A1, R, R6, Z, and Advisor Class shares of all Franklin Templeton Funds is the date of effectiveness of the fund's registration statement or the first day the fund commenced operations. For Class C shares, generally the inception date is the first day the fund commenced offering such shares. Exceptions: Templeton Global Balanced Fund Classes A and C use the inception date of the old Class A and C shares, renamed Class A1 and Class C1. For Franklin Mutual Series Funds, Franklin International Small Cap Growth Fund and Franklin Pelagos Commodities Strategy Fund, the inception date for Classes A, C, R and R6 shares is the funds' oldest class', Z or Advisor, inception date. Franklin U.S. Government Money Fund Class R6 inception date is the first day it commenced offering such shares. For Franklin California Ultra-Short Tax-Free Income Fund Classes A1 and Advisor Class use the inception date of its predecessor, Franklin California Tax-Exempt Money Fund.

Important Legal Information

Distributions are made to those who are registered shareholders of the fund on the record date. Distributions are paid on the pay date. Estimates can change prior to the record date depending on market conditions and number of shares outstanding. All dates and distributions are subject to board approval. Net investment income distribution estimates do not include short- or long-term capital gain distributions the funds may be making. The actual amounts of net investment income shareholders will receive will be reported, along with any short-term capital gain distributions, as Ordinary Dividends on Form 1099-DIV.